[ A L G O R I T H M I C
T R A D I N G
S U R V E Y ]
JP Morgan
J
are evaluating other providers for future use, with ar-
P Morgan drew a lower proportion of responses in
eas of functionality that respondents cited as wanted
this year’s algo survey - compared with 2017 - from
included the ability to control routing destinations
long-only respondents, generating 3.79% of the total
from the desktop, the use of more dark pools and
responses, enough to put the firm squarely in the mid-
different types of liquidity seeking. Bloomberg is the
dle of its peers. Responses came primarily from mid-
EMS of choice for JP Morgan’s clients according to
to-large-sized firms with at least $10 billion in AuM,
this year’s survey, with over one-third of long-only
with an even distribution of activity in non-equities
firms utilising EMSX.
asset classes including fixed income, foreign exchange
JP Morgan’s scores decreased across all 14 categories
and electronically-traded funds. Long-only firms that
in this year’s survey. While there were only marginal
have adopted JP Morgan algos lean heavily towards
drops in ratings for cost, price improvement, execu-
using Bloomberg as an EMS provider, with ITG and
tion consulting and smart order routing capabilities,
Charles River also mentioned.
there was a significant drop for JP Morgan’s customer
Around 60% of long-only
respondents
said
their
J.P. Morgan
support, which fell from 6.28 to 5.38 year-on-year. De-
usage of JP Morgan algos had increased
year-on-year,
Improve
Reduce
Ex ecution
spite these decreases,
JP Morgan still scored higher in
while the rest saw usage stay consistent. Only three
Year algos from other
Cost
Speed
trader
almost
all
categories
than
firms said they used other
providers
market impact consistency the overall survey averages,
particularly for speed, anonymity and crossing.
than JP Morgan, however, just under productivity
half said they
2018
5.75
JP MORGAN RATINGS FOR ALGORITHM
2017 PERFORMANCE 6.06
5.52
6.08
5.78
5.98
5.58
5.59
Improve trader
productivity
5.65
2018
5.75
6.06
5.52
Reduce market impact
6.08
5.78
Execution consistency
2017
5.99
5.98
5.58
5.59
Cost
5.65
Speed
5.99
5.99
6.09
Anonymity
5.39
5.45
Price improvement
5.08
Customisation
5.52
5.81
Ease of use
5.15
Crossing
5.70
5.38
Customer support
6.16
6.28
5.32
5.49
Execution consulting
5.28
Dark pool access
5.81
5.63
5.82
Smart order routing
capabilities
0.00
1.0 0
2.00
3.00
4.0 0
5.00
6.0 0
7.00
Issue 55 // TheTradeNews.com // 89